Rio Tinto (RIO.AX) announced on Thursday that it has signed a memorandum of understanding (MoU) with India-based AMG Metals & Materials (AMG M&M) to evaluate the development of a large-scale, low-carbon aluminium production facility in India.
The proposed project envisions the production of up to 1 million tonnes per annum (mtpa) of primary aluminium and 2 mtpa of alumina, both powered entirely by renewable wind and solar energy, supported by pumped hydro storage systems, the global mining giant said in a statement.
As part of the initial phase, the partners will assess the feasibility of constructing a 500,000-tonne-per-annum aluminium smelter at a strategically favorable site in India. While the financial details of the agreement were not disclosed, the initiative marks a significant step toward sustainable industrial development in the region.
AMG Metals & Materials was founded by Anil Chalamalasetty and Mahesh Kolli, the co-founders of India’s Greenko Group—one of the country’s leading clean energy companies. The collaboration aims to combine AMG M&M’s renewable energy expertise with Rio Tinto’s global experience in aluminium and alumina production.
As global industries shift toward cleaner supply chains, the project aims to meet the rising demand for low-carbon materials across sectors such as automotive, construction, consumer packaging, and electronics. Under the MoU, AMG M&M will work with Greenko to provide a reliable renewable energy solution, while Rio Tinto will explore options for alumina supply to support smelting operations.
“This MoU could deliver much-needed low-carbon metal at scale to propel decarbonization initiatives in global supply chains across auto, construction, consumer packaging and many more segments,” said Mahesh Kolli, Group President of AMG M&M and Greenko.
If successful, the project could position India as a key hub for sustainable aluminium production, aligned with its broader goals of industrial decarbonization and energy transition.